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Us 22, U.s. 19, S&p 10, Cbs 9, United States 9, Hp Moonshot 8, Ashley 7, America 6, Revlon 6, New York 6, Boris 6, Lori 5, Edward Snowden 5, Buk 4, Underarm 4, Peter Barnes 4, Schwab 4, Richard Fisher 4, Warner 4, Hp 4,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    August 5, 2013
    1:00 - 3:01pm EDT  

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taper proofing, if you will, your portfolio, wall street disagrees on the timing, but higher interest rates are expected in the future. what you need to do now to prepare for retirement portfolio p adam: turning the dreaded chore into high speed excitement. taking you inside the big business of competitive lawn mower racing. it was not like that in ohio. yes, you heard that right, souped up lawn mower. they go 60 miles per hour. the greatest show on turf. first, time for stock, going to the floor, annie coal, watching whether or not we're going to trim losses after the ism data came out; right? >> i so do lawn mower racing. love that action. yes, absolutely right, we had a market down, got in the ism number compromises the services group, and it was better than expected helping us to pair our
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losses. we've seen the nasdaq move into the green today and make record new highs that we have not seen in 13 years to the nasdaq. dow and s&p, though, pulling back, no highs today. there is certainly this negative tone to the market today. the dollar's been flat, most of the names on the dow jones industrials are lower they'd with a few exceptions, about 24 of the names are read while only six are green, so that is a lot of names pulling back today. i wanted to also look here at fossil. they make watches, accessories, due to report, analysts now citing some skepticism, barclays, for example, they are now predicting that there's going to be deaccelerating sales trends based on what they have been doing the checks and finding this out. we are seeing fossil to the downside. back to you. lori: thank you for that. commodities, gold fell, get
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this, fifth straight session now, longest slump since may. we are in the trading pits of the cme. phil, gold, wow. >> it is hit today, lori. it has to do with the ism nonmanufacturing number that came out much stronger than expected leading gold traders to believe that we're a lot closer to tapering than further away. we had comments from the u.s. fed president, mr. fisher, who basically said that the federal open market committee is a lot closer to execution mode when it comes to dialing back purchases putting a lot of pressure on gold despite the fact there's a lot of mine closures in australia, cutbacks in production, and that's going to have system impact. oil, quick. oil is flip-flopping back and forth, not sure how to take the news on the tapering back. good news from libya, oil exports are flowing begin porting pressure on the brent
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pressure on the contract, and as far as products, big refinery, coming back online, and big selloff, and the three cents on gasoline, a penny on heating oil, so good news, refineryings coming back online, and to a station near you. >> no surprises out of commodities, thanks so much. >> thank you. adam: the july jobs report missed the expectations, only 162,000 positions added, but more disappointing? the quality of the jobs, mostly part-time or low paying. what's that say about the current state of the labor market. joining us is bob funk, chairman and ceo of president, and a former president of the federal reserve bank of kansas city, let me throw statistics to comprehend here. in july, part-time workers in the countrying thed 22.8 million, the highest it's been,
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and 65% and 162 # ,000 created were part-time. this cannot be healthy. what's going on? >> glad to be here, adam. it is true in the market place the part-time jobs increased, i believe we were up 123% over the last three years, and the part-time jobs are out there, and full-time jobs are there as well. there are some job opportunities, but they are looking for more semiscaled and skilled individuals, and we're just in a shortage of those individuals across america. now, in the last couple three quarters, of course, our industry's been flat. usually we're a six to nine-month indicator of what's happening in the economy so we're a little bit flat in the industry, and without the semiskilled to skilled individuals to fill the positions, we could be in for a long fall. adam: the jobs you're talking about, and we'll come back to
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the long fall because there's ramifications for investments, but welders, machinists, administrative positions available. why aren't companies, if there's a shortage, i think the figure is 4 million, why don't they train people? you get a position like that, that's a well-paying job. >> well, the flexible staffing industry is a training process because many of the temporary employees, 60% of the company goes full-time, and we're interested in putting the people in full-time. now obamacare, of course, is going the opposite direction taking full-time and putting it into part-time. it's good for our industry, but not good for america, i don't believe, as a whole. adam: the affordable health care act, obamacare, how much of this part-time job creation serves we are seeing is the result of employering says we don't know yet what the true ramifications will be or the rules under obamacare that require, you know, you pull back to part time
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and don't pay the same amount. what percentage of jobs are because of that? >> many are because of that. we deal with medium and small companies, and the smaller companies are saying, we just can't afford it. we don't know where it's going, and, of course, we don't know how many people we can hire full-time because of the costs and expenses going to be over the long haul, and they are hesitant to do that putting them on part-time employment until they know exactly where the obamacare's going. adam: something lost in this is when you adjust for inflation, wages of americans are actually drops, but i'm looking now at the dow, down almost 60 points. the job report last week, you'd think it's a good sign for investors and traders because the fed keeps the easy money going, but richard fisher today saying that may not be the case and weighing in just because a few people are talked about replacements for ben bernanke, there's several others not in the press. first question to ya, do you
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think the fed pulls its foot off bond purchases? second, is there another candidate other than janet or larry summers out there to replace ben bernanke? >> well, i believe those two candidatings, of course, are the first in line, but they have themselves o difficult position because if they raise interest rates very much, then, of course, they owe the general public more money in return and puts us into more debt, so they have got a challenge on their hands, and as a member of the federal reserve, i know they are concerned for the future. their concern, of course, is inflation, and, fortunately, we have not had that much inflation over the last ten years, so i think if they held firm where they are without raising it too much, the economy would be in pretty good shape. adam: who is the next federal chairman? >> i think ms. yellen has the opportunity because of the federal reserve experience
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behind her, and i think there's a lot of trust factors involved there in working with the president. i think she might be the choice. adam: all right, bob funk, chairman and ceo as well as president, we appreciate you being with us. >> well, thank you for having us on, appreciate ya. lori: okay. making news today, cleared for takeoff. the european commission gave the u.s. airways an amr merger the go ahead. the merger is conditional upon release of one daily lone di-philadelphia run leading to monopolies as well as a judge's approval. stock soaring after banning imports of apple ipads and iphones reversing the ruling in favor of rival samsung electronics. apple up more than five bucks right now. they issued the ban in june ruling the products violate a patent held by samsung. the chairman overturned the ban giving samsung too much leverage
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over competitors. an anniversary to report, not necessarily a happy one. it's been, believe it or not, two years now since standards and poors downgraded the u.s. credit rating from aaa status to aa-plus, and this was the first time in history america's debt was declared to be anything other than absolutely perfects, risk free. as congress heads to summer vacation, history repeat itself with another debt ceiling debate? shaping up to look like that for sure. liz claman on "closing bell" this afternoon at 3 # p.m. earn. adam: announcement from baseball is expected shortly regarding the suspensions of new york yankees alex rodriguez and perhaps as many as 12 other players. the suspensions are the result of a doping investigation regarding a florida biogenesis clinic. rodriguez is scheduled to make the season debut for the yankees
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tonight after recovering from an injury. he's also expected to be suspended through the 20 # 14 season, but will be allowed to play while appealing what is expected to be his suspension. two weeks ago, milwaukee outfielder, ryan braun, agreed to a 65-game ban through the rest of the 2013 season because of his role in that scandal. lori: how do new york fans feel? "just go," can't say if more clearer than that. it's 96 # million all in contract for a-rod? adam: going to cost him a lot. lori: we'll bring you the press conference as soon as it begins. meantime, the cbs-time warner shut down showdown, millions in the dark. he blackout could last. talk about the latest. adam: oh no, vino, a grape shortage with analysts worried that america doesn't have enough grapes to make all wine they want to make.
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and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet? adam: headlines cross from dallas federal reserve president richard fisher and what he's saying about the fed's plans to taper. tapering should begin in september unless, and this is a quote, "we see some disturbing data," adding that he would have started dialing back tapering some time ago. more from our peter barnes coming up in just about 15 minutes now from what mr. fisher has to say. lori: no surprise, he's a noted hawk. let's go ahead and update you on the marks as we do every 15 minutes. checking in on the floor with nicole. beauty of the deal to tell us about; right, nicole? >> that's right. a name we're watching closely is revlon, hitting a new high
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today, up 5.5% at the moment op the 660 million dollar deal. what they are doing is buying back a salon focused beauty care company from the cbc capital partners, and by doing this, revlon says it completes their core business. they were missing the professional salon channel. doing this move, that brings them the opportunity to expand their product offering, and, also, it enables them to reach new customers, so they are loving the deal, and the shareholders like it too. back to you. adam: thank you. time to make money with a major player in the solar industry. we heard the name before, charles. >> you have, lori loves this. lori: yes. >> the founder of revlon, his name. lori: it's not the founder. >> first name is charles, charles revson. anybody named charles who started a fortune 500 company i
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know. lori: revlon sexier? that's good. >> solar city; right? we talk solar a lot, and you don't have to like it politically, economically, any way to make money on it, i'm not a fans, but there's a deal this morning, keep announcing the deals, huge deal, all the solar playing moving. governments around the world, not just america, pumping money into this. now, these guys have a good hookup with this administration with military posts, five insider buys, insiders bought about $4 million worth of the own stock. this stock popped. you can see the chart popped, pulled back, looking for a close above 45 to be a breakout. i don't know who shorted it, but above 45, it's going immediately back to 53 and higher. lori: i hear what you say about the subsidies, but solar's here to stay. it's proven technology as alternative energy source. >> without the subsidies, in other words, the growth curve
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would be like this is 2013, it would be 2050. pump taxpayer money in it, it grows a little sooner, of course, what they are trying to do, and you can argue whether or not it's worth it. argue a free market solution, and i'm going to get 234 on the game and make money. lori: on the other end. >> that's right. adam: when the insiders' sell the stock, let us know. >> we will. adam: thank you, charles, a see you. lori: time warner battle wages on as cable is dark for subscribers around the country. we have the latest on the squabble. where's it stand, den? >> get r more bitter, and the sides are not talking from what i heard this morning. cbs is now 68 hours off the air in new york, l.a., and dallas on time warner systems. time warner saying that cbs is just being really unrepublican here and blasting its cbs and running on screen saying in part, "cbs made outrageous demands for the programming it
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delivers free over the air and online," continuing to say, "we regret inconvenience, but it's crucial to let cbs we do what it takes to keep down the price of tv." it's nice of those guys. cbs is asking for a 6% increase, and cbs says that's a lie. we're asking for 20%, and cbs blasting back, though, of course, saying time warner cable quote conducted negotiations in a combative and nonproductive spirit indull jing in pointless brinksmanship and posturing, and cbs is upset, show time, cbs owns, is not in negotiation, but caught in the cross fire and drop in show time, all 121 # million homes in 17 markets is quote, a move that is completely unnecessary and totally punitive to its subscribers, so the rhetoric is rising, some people think analysts think this could go well into september. this is harder on cbs than hwc.
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cbs turning to youtube and newspaper ads because in new york, on channel 2, time warner is running star kids shows, and you can't tell that cbs was there. lori: suspect that something? dennis, tharngs. adam: specific terror threats. what's behind the unprecedented move, and what could it mean for your money? we'll explore that next. lori: how about a look at the green back fairing against trading partners today? stronger against the euro, but weaker against the other currencies. back in a moment. clients are always learning more to make their money do me. (ann) help me plan my next move, i take scottrade's free, in-branch seminars... plus, theilive webinars. i use daily market commentary to improve my strategy.
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>> 23 minutes past the hour, this is your fox news minute. jay pap's defense minister says three crew member ejected themselves from a chopper and sur vied. a fourth was taken to the hospital. the u.s. air force says the black hawk went down on a training mission. about a hundred homes remain evacuated in louisiana as crews clean up the site of the 26-car derailment west of baton rouge. the train went off the tracks yesterday afternoon triggering a leak of a dangerous chemical.
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one went to the hospital complaining of an eye ire irritation. japan launched the first talking robot towards the space station sha's supposed to communicate with the other robot on earth sent with five tons of supplies and machinery on a rocket yesterday. those are your news headlines on the fox business network. now back to lori and adam. lori: that looks like a child's toy, that robot. unbelievable the technology. many thanks. okay, breaking news for you, fox sports reporting 12 major league baseball players agreed to be suspended for 50 games in the ongoing investigation, and among those, texas rangers right fielder cruz, detroit shortstop, and still no word on yankee's star alex rodriguez. adam: embassies authorized to open by the state department after they were closed sunday because of a threat from
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al-qaeda. nineteen posts, however, remain closed as a result of what the state department calls an exercise of caution. back in the united states, no suggestion that new york city faces a direct threat. the nypd made no changes, even as the department of homeland security beefs up its presence at airports and train stations. fox news middle east and terrorism analyst joining us with the latest development. i got to let you know, i'm going to bring something into the discussion, you know, the price of oil is actually falling right now, indicating that at least investors don't seem as concerned as the u.s. government. is this a false alarm? i mean, we have members of congress saying it was a cred l -- credible threat. >> look, the financial world is always concerned about the financial root, the financial structures, so if the threat is against buildings, against diplomatic, unfortunately or military, they can still believe that they are not going to be
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targeted. when the threat targets international waterways, for example, in the gulf, red sea, or suez canal, you can see a financial reaction that aligns itself with the geopolitical one. that's my assessment. >> has al-qaeda or anyone causing harm to the global economy attempted yet to direct an attack say at wall street, the canal, or some of the key geographical locations that put an effort on the financial world? >> it is. all locations mentioned are on the map of al-qaeda and the jihadists. allies, worldwide, generally speaking, this is how they function. to those who support them inside the united states or in canada or london, their target, quote-on-quote, the commander of al-qaeda, their target is inside the united states, so, yes, the home grown cells, the individual lone wolves targeting financial fights within the united states,
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but within the region, there's cells, and many cells, so they target local or regional outlets such as the suez canal or other companies, for example, that could cause harm. what's happening now is the targeting of embassies has to do with the image of the united states. they want the world to see that the united states is actually afraid, and that would have an impact on the economic markets. adam: isn't, from your sources, hearing that most of this is coming from its al-qaeda and yemen, the al-qaeda, arabia peninsula, is it not? >> the government here and around the world, the other government's allies basically detected that the e-mails or whatever information came, it's coming from the sophisticated network in yemen, but that does not mean yemen is the only place. there are many franchises around the region like somalia, but yemen seems to have a prominent international infrastructure to conduct the operations. adam: experts talk about chatter and why the government raised the alert was because of the
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chatter. raising this publicly and close embassies, didn't we send a signal to the people to do us harm, what now, but reschedule the attack? >> that's an excellent, excellent point, and that's exactly what would be my comment to congress and to the administrationings and all western governments, be careful in the way we're responding. probably it would have been a better way to do those measures and not declare them. meaning since attacks could have occurred against the embassies, better protection of the embassies, no declaration we shut down the embassies. this is encouraging al-qaeda and the other organizations, absolutely. adam: thank you very much for joining us here on the fox business network. >> thank you for jg -- having me. lori: taper or no? the message after friday's job report, will the fed cut back in september as ma expect? adam: while the taper dayll, non
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and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber. lori: and it is time for stocks now. as we do every 15 minutes let's head back to the floor of the new york stock exchange and nicole petallides who is watching some food makers this time around. >> that's right, that's right. tyson foods doing so well. they are the largest u.s. meat
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processor which turns out demand for chicken and beef is so well for them. look at the stock. it is up almost 4% for them. new high and good move for the shares. they did have higher costs for feed but managed to do higher pricing and you saw chicken and beef did very well. that offset the lesser demand for pork, for example. want to also look at the kraft. kraft is on the move as well. kraft is a different picture. right now it is to the downside. you see demand for dressings and jell-os, household names, actually dropped off a bit but the profits for the quarter actually surged 37%. year-to-date kraft remain as winner. kraft is up about 25% this year. back to you. adam: nicole, thank you very much. dallas federal reserve president richard fisher is speaking out today about tapering, the asset purchase program. he says the fed is closer to execution mode than some people might think. our fedex pert peter barnes is
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in washington, d.c. this is not unexpected from him, is it? >> you're right, adam. president fisher is an inflation hawk and a critic of quantitative easing. he said after friday's jobs report he wants tapering of the bond purchases to begin this fall. this came after the weaker than expected payroll report on friday and unexpected drop in the unemployment rate from 6 -- 7.6% to 7.4% n a peach in portland, oregon, fisher said quote, with the unemployment rate down to 7.4% i would say the committee is closer to execution mode assuming there is not reversal in the economy. fisher is not a voting member of the fomc but he is in the room for meetings and as a non-voting member. in classic fish, he said in today's speech, at last week's meeting i suggested we should gird our loins to make our first move this fall. but a former fed economist thinks fed members don't have to
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gird up that quickly. >> the underlying economy seems strong but we don't know how the big the fiscal hit will be yet so why not wait? the inflation numbers are a bit low so why not wait? and finally the bond yields have gone up and mortgage rates have gone up empty past three months. more than they have been expected or wanted. and again, why, that could slow the economy down, so why not wait? >> also some remarks on tapering today from don kohn, the former vice-chair of the fed who is now a candidate to succeed ben bernanke. in a research report this morning cohn said, quote, i don't think the disappointing employment report will deflect the fomc will -- from beginning to reduce its purchases after the sent meeting. more to sort out all on of this. adam. adam: the person who sorts it out for us is you, peter barnes in washington, d.c. thanks very much.
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>> thanks, adam. lori: maybe we need vegas odds on the tapering debate. hearing the words cause goose bumps for investors. with winding down of quantitative easing that the fed is inserting into the marketplace and recent volatility in the bond market, should retirees be concerned about their fixed income investments being taper-proof? we have guy from janney montgomery. we heard cautious voice this is morning. what is your take on that and when do you think tapering will commence? >> we know it will happen, right? the fed keep buying infinite number of bond out to eternity. doesn't work that way. the statement on june 19th put as relatively narrow range in possible indicates. to me that much more important that the end is occurring soon than a specific date. our money or vegas odds makers on november. lori: appreciate that. appreciate the specificity, guy.
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talk to me about the bond market. where do you see rates going? we look at the international picture. are new security concerns at u.s. embassies in hot spots. do you think that will send investors back into perceived safety u.s. government debt or do you see interest rates rising here? >> our forecast for year-end yields to be pretty close where they are right now. that said the risk in the long-term bond market is certainly a lot higher than it has been in anytime in recent memory but when you bring up idea of geopolitical risk that is positive factor for the bond market conceptually. lori: sure. >> we specific embassy closing and we don't priced in hopefully doesn't occur, actual attack or actual disaster. that unfortunately is very hard to predict and i can't suggest investors place their bets on that type of an event. lori: if you are investing in fixed income, how near, medium or long term should you be thinking? what is your advice?
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>> we think kind of the best area right now is the neighborhood three to at most seven years that reflects the fact over time the federal reserve is most likely to withdraw, not just taper their bond purchases but also withdraw short term stimulus but that is not likely to come for probably three to five years down the road at the soonest. if you can invest to that time horizon, you're taking advantage of low rates in the front of the curve and reinvest at a time rates are little higher three to five years down the road, thereby insuring greater total return than if you went out longer right now. lori: anymore complex instruments you like within the fixed income space? floating notes, i know you had a comment in one of your earlier notes? what about munis do they still offer tax-free, i mean they do but is that still worth it? >> it is absolutely worth it. keep in mind with the affordable care act, the health care tax that went in effect january 1st of this year the effective income or the effective return on tax-exempt income is much higher.
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the top marginal tax rate is nearly 44% at this point that allows for somebody earning tax-exempt income in the muni markets to take a hire cut. if you compare that as opposed to taxable bond. other area you like reference the floating rate side and specific structure fixed to floaters. these are instruments that say for the first five years of their life carry a fixed coupon, higher rate fixed coupon and floating rate bond to the back end. hopefully the floating rate bond activates at a time when the fed is looking to raise rates. that is good way to reduce interest rate risk and have a decent up front coupon. lori: gee, thank you for your advice. >> thank you, lori. adam: nothing says love than soybeans. our biggest export to china. you can't ignore them. they're looking more like has beans. i will keep my day job. we're down on the farm with an analyst who called the bear market. lori: think lawn mowers were just for cutting grass?
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inside the budget busting world of competitive lawn mowing racing. there is a career. adam: i cut my last lawn, it was in cleveland heights, ohio. thank you very much. [ male announcer ] how do you get your boue?
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bounce is great because the freshness lasts for weeks in the drawer. why can't everything stay fresh that long? [ male announcer ] how do you get your bounce? [ man ] lasting freshness. >> i'm cheryl casone with your fox business brief. shares of jcpenney are down after hiring a new marketing chief from kraft foods. debra berman steps into a job that has been vacant for 14 months and she has her work cut
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out for her. the company suffered deep losses after a failed turn around plan by apple ceo ron johnson. the stock is down some 30% over the last year. general motors is making it happen in china. gm and its joint chinese venture sold more than 220,000 vehicles in july. that is up 111.1% from -- 11.1% from last year. revlon will buy spanish beauty company the comer group for 660 million. revlon sold that very business 13 years ago. that's the latest from the fox business, giving you the power to prosper.
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lori: the price cuts just keep on coming for microsoft's surface. this time it is the surface pro getting a haircut as microsoft is now offering a $100 discount
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for the high-end tablet. the discount bring the surface pro's price to 799 or $899. keep in mind that microsoft already cut the surface rt price by $150 earlier this year. but even as the company struggles with mobile and its windows 8 operating system, its stock prices up almost 20% this year. adam: from tablets a getting a haircut to soybeans getting a scalping, the prices keep falling and our own jeff flock is back in mchenry, illinois, taking a look at this year's record crop. it looks good but will it make any money, jeff? >> oh, i think that is why this prices so low. this field is beautiful. take a look though at the front month contract. that is last year's harvest essentially. current month soybeans compared to the november contract which is the harvest of this year. look at the huge disparity there, jim mccormick. you called this in march, right? >> yeah. we're looking at pretty much, the new crops going down
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compared to the old crop. old crop we were with a short driven supply due to drought. plenty of rain. beautiful crop on the way, pressing the -- >> he stood in this very field march of this year t was covered with snow. you said at the time. we have great snow pack. i know we had a drought but this could bode very well for this drop? >> we had a great snow pack. that brought in moisture for planting. got the crop planted. we're in a great field in northern illinois. >> i want to take you also to soybean predicted stocks. world stocks never higher. a lot of this money that, you know, has gone into this market in the drought is now sucking right out of it. >> pretty much, we're looking for a huge rebound in both domestic stocks as well as world stocks. brazil, argentina, talking about planting more acres on top of our big crop this year. that will drive prices lower and money is coming out of the bean market. >> before we get away, i want to get up close and personal. see if lori can see this. look at pods set there.
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come over and count them. >> if you look at this pod, it's a pretty good pod. little beans fed into them. good rains, next 30 to 45 days, that will guaranty this is a bumper crop here. >> we could have soybeans coming out of our ears. that means beans in the teens will be history. good news, maybe, unless you're long beans. remember that? adam: how many jokes we could make about beans but we're not going to? jeff, good to see you. lori: yum. japanese food today. get you updated on the markets. jonathan corpina on the floor of the new york stock exchange. so, jonathan, why is the market down right now? >> we have "a tale of two cities" here right now. last week we have ton of economic data and very robust earnings calendar. this week if you look at the economic calendar, not a lot for investors to hold on. big names are already come out already. we're seeing lack of information. this market had a good run. investors are waiting for
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opportunities to make good sales. we have a couple days we're seeing a little pressure on the market. that is continuing day in and day out now. as we continue end of the session we should hold on to these levels, s&p important level. lori: what are the drivers of the week? what should i watch out for? >> retail sector and pharmaceutical sector. real good names coming out this week for earnings season. that will give us insight into a few things, m&a activity and back-to-school season. lori: jonathan, thank you. >> thank you. adam: when wine tasting is all you get, a new concern over a wine grape shortage in california of all places. >> move over nascar, there is new high "speed racer" in town. how souped-up lawn mowers are the new thrills for those avoiding chores around the house. ♪ [ male announcer ] at his current pace,
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lori: okay. there's a new racing craze and it starts with something you might find in your very own garage a lawn mower yes, the u.s. lawn mower racing association is growing. has a long list of sponsors, dedicated fans and 700 racers nationwide. u.s. lawn mower racing association founder and president bruce kaufman joins us now with the details. bruce, so nice to meet you. so the lawn mower racing association. >> nice to be here. lori: i understand it originated on april fool's day, 1992. how did it evolve really from a joke into a real racing industry? >> we started with stabl
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fertilizer and ethanol fuel treatment with tongue in check. we said let's do it right. it is promotional stunt and give raising organization structure and rules to something that didn't exist in this country and we've been slinging sod for 21 years. that is awesome. lori: that is awesome. who are the people that raise lawn mowers? are they backyard dads looking for new hobby on the weekend or full-time profession. >> it is hobbiests. everybody from every age to socioeconomic level across the country, literally from coast to coast, maybe raced something back in the day want to race something on the cheap or young kid wants to enjoy himself with his father or grand past it is for everybody. the mow, ther merrier. lori: you couldn't resist. tell me the lawn mowers. do they actually cut grass? secondly, how much money are racers spending to soup up the engines? >> racers started off as grass cutting machines. we take all the blades off and
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don't have lawn mower blades. has to be original engine block. 11 different classes from mild to wild. you could spend couple hundred bucks to 7 or 8,000. there is really a place for everybody in our sport. lori: is there purse money? there are sponsorships. do the racers, does your organization earn a profit? can you give me a sense of the finances? >> from a profit point of view. we're not-for-profit. we raise money for good causes and we promote our sponsor, stay bill ethanol treatment and. we created it together with gold eagle company out of chicago as a partnership to promote sta-bil. we encourage sponsors like k and n filters. 303 products is a new sponsor and aerospace protect ant and speed detailer. we have sponsors at the local level. just like nascar. even though we're not-for-profit we encourage our racers to speak their own sponsors and we help them with that. keeping a machine out on the
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track and over the road take as little bit of money. it's a lot of fun. raises money for good causes and i'm pleased to be part of it. lori: profiled in the "wall street journal," one of the most popular stories on that day's issue and you're warmly embraced by nascar. some lawn mower races are happening outside real car races correct? >> absolutely. we're thrilled to have a great relationship with the charlotte motor speedway, sean johnson and his crew. bruton smith himself. nascar empa sari yo. we have a relationship with bristol motor speedway in tennessee. nascar has their eye on us. we emulate what they do from competitive and safety point of view and we keep getting bigger n this economy americans look to do things on the cheap. cities and municipalities cutting in lawn mower tracks on vacant pieces of property and we're mowing and growing.
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lori: i found myself a new hobby. thanks for joining us. >> thank you very much. adam: when you do that, put down the grub killer. lori: i haven't heard of any of those sponsors. okay. adam: maybe a sponsor with the wine companies. box of wine you might love it could go the way of the dixie cup a new report at one wall street firm, this should raise eyebrows by the way, highlights a great shortage in the u.s. wall street firm trying to race prices? hmmm. shortage as a result of fewer new vineyards being planted during excess in the 1990s. foreign wine producers on the other hand are giving toasts as they increase grape prices domestically and will allow them to better compete on price. the report shows new u.s. plantings have to increase two to three times in order to satisfy future demand but it may not be that simple. the report estimated that grape farmers in central california lost $170 per acre in 2011 while they could have made $2962 an acre growing walnuts or
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$1483 growing almonds. lori: i don't know. two buck chuck for me. cheryl casone was telling me story of trader joe's. adam: they came up with the wine. lori: they came up with the wine. i'm not pick at this. adam: -- picky. adam: wine on mime beach. it is so hot. lori: can you hear me now? legal battle brewing over how private your cell phone actually is in the wake of the edward snowden nsa scandal. it could make its way to the supreme court. first, fox senior judicial analyst, judge andrew napolitano will weigh in with tracy byrnes and ashley webster as they take you through the next hour of trading on fox business network. stay with us. [ male announcer ] these days, a small business can save by sharing.
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read back the chicken's testimony, please. "buk, buk,ukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half. what's in your walle folks have suffered from frequent heartburn. but getting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the rst place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. so the cbs eye has been shut for more than three million homes since friday. some are saying it could stay that way until sent.
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that is when football season kicks off. that is crazy. ashley: in the wake of the edward snowden scandals, some are asking, how private is your sell phone? issue could make its way all the way to the supreme court but first our judge will be weighing in. tracy: 12 major league baseball players have been suspended for 50 games for using performance-enhancing drugs. we don't know the fate of yankees star alex rodriguez. we'll bring you that when we get it. we'll bring you the cost of the scandal to the players and the game. with negotiating going on? ashley: back-room deals may be going. tracy: dow is down 56 points. we have to get to the floor of the new york stock exchange. nicole petallides down there. nicole, it has been hovering down here for a while. >> you're right, it has. of the at its lowest point it was down 70 points. right now we're down 56 points for the dow jones industrials. that is a loss of one-third of 1%. nasdaq moved into the green and set new record highs we haven't seen for 13 years. the s&p 500 still holding that
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1700 mark which is really psychologically crucial. when you sit above these levels there obviously does bring good news with it. people feel better when you're sitting above some of those key points. that being said we got the ism number. that is in the services sector and that was slightly better and that helped thing a long. dallas fed president richard fisher wants to pull back on the stimulus but he is not a voting member. looking at tyson foods a name that has been on the move and doing well today. right now 4%, hitting a new high today as they have had a lot of demand for chicken and also beef. that offset some other things such as weaker demand for pork and higher seed costs. so they have obviously had to juggle as a company but came out on top of this one. as a result you're seeing stocks doing really well, up over a buck. back to you. tracy: thanks, nicole. we have some breaking news now from the fed on bank lending
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standards. we have to go to peter barnes in d.c. hey, peter. >> hey, tracy. more to chew on the health of the economic recovery from the fed. its quarterly senior loan officer opinion survey on bank lending practices suggests the recovery might have gotten a little more help than we knew from banks in the second quarter. the main line from the report says, quote, domestic banks on balance reported having eased their lending standards on having experienced stronger demand in most loan categories over the past three months. now the fed surveyed about 100 with u.s. operations on their commercial and consumer lending. it found more banks easing standards last quarter, on mortgages and car loans, with demand picking up for both. bank critics have said tight lending standards have hurt the economic recovery. so maybe this is helping. tracy, ashley, back to you. ashley: interesting. tracy: peter barnes, thank you very much. you wonder are we on the path to
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do it all over againany, i hope not we would go all the way down that path. maybe there is a healthy balance somewhere in between. to another now big story, analysts say cbs may be dark into sent as the cable battle between the network and time warner cable rages on. dennis kneale following it every step of the way and joins us now with the latest. dennis. >> hello, ashley. fee fight between cbs and time warner cable is getting even nastier. cbs has been dark for 69 hours in more than three million homes in new york, los angeles, dallas. cbs's showtime channel went off the air in all 12 million homes served by time warner cable. they yanked the cbs and showtime brand off the and run a screen, saying cbs made outrage just demands it delivers free on the air and online. we regret this inconvenience but feel it is crucial we let cbs know we're willing to do to keep
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down the price of it. v. gee, awfully noble of them, ain't it? cbs posted full page ads and on youtube shooting off statements of outrage. accusing twc, of quote, combative, non-productive spirit in pointless brinks manship and distorted public positioning. cbs bashing the cable guy in this ad on youtube, since they don't have their o.w.n. outlet. time warner cable is urging customers to turn to areo, the service cbs sued, telling viewers to watch shows that at cbs.com. ah, cbs shut off online shows. not just in the three markets in this fight but to all time warner markets nationwide. that is just mean. when you go to cbs.com you see a blistering video ad attacking time warner. cbs shade dropping the showtime channel, is quote, completely unnecessary and totally punitive to its subscribers.
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never mind time warner offer ad showtime a one year extension and showtime turned it down. in a helpful q&a cbs asked when it might be back on it. wc? it answers quote, soon, we hope but only time warner cable can answer that question. we'll see, ashley. ashley: yeah. it is ugly, isn't it? >> yeah. tracy: stupid though. >> really fun. >> stupid by the network because in this day ande will quickly find and replacement and will not come back. >> more on that coming up actually. the ratings will surprise you. tracy: yeah, i think. thanks, dennis. ashley: stay tuned as they say or not tuned. economic data from across the pond showing signs of recovery. the british services sector grew last month at the fastest pace more than six years. business activity in the eurozone as a whole expanded for the first time in 18 months. our next guest says, well, we're in the early stages of a european revival. joining us now, david joyce, chief market strategist at ameriprise financial.
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david, we'll get to europe in a minute. let's start here in the u.s. i saw the piper jaffray raised its target on s&p for the end of the year to 1850. is that a little optimistic or not? >> it sound it to me. i have no doubt we can get there but i'm not sure bit end of the year. in fact my view we may end up the year a little lower than where we are today. seems as though we have gone so long without any correction here and it is time to see some signs of a toppy market. i was, my antenna got raised over the weekend when i was reading about how private equity is saying what a great time it is to be a seller. ashley: yeah. >> we also saw some record inflows into equity mutual fund. these are more hallmarks of a market top than a market that's poised to accelerate. so i'm a little cautious in the short run. >> so you're keeping your cash on the sideline for now but that cash that you are putting to
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work, where are you, what sectors do you like? >> well, in the u.s., i too subscribe to the notion that the economy should be getting better over the course of the next several quarters. and, so i think you need to be in the cyclical areas. i would start with consumer discretionary, financials, and, somewhat of a laggard recently, technology. i think there needs to be a big catch-up in spending on the corporate side. so those are the, parts of the market i would be overweighted. but, geographically, you alluded to it. ashley: yeah. >> at the top. i think europe looks more attractive at least right now than the u.s. does. it's cheaper. it has, you know, a recovery story that's just getting underway. the financial sector has -- ashley: talking northern europe as opposed to southern europe? >> yes, primarily and in the core. and i would include, you know, the u.k. of course in this discussion after their service
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numbers this morning as well. so it's not across the board. you still have to be a little bit selective but you can pick up a lot of world class companies pretty cheaply in europe, more cheaply than you can in the u.s. ashley: it is funny, you mention ism. it was not bad here on this side of the pond yet the market didn't really react. we're still negative on the dow. are we in a period, do you think, david, where negative news has a bigger sting to the market than positive news has an upside? >> yes. because i think the market understands that we're getting very close to the beginning of tapering of qe and that the market is going to have to rest on its own laurels. it needs stronger economic data, the market does, i think, in order to, number one to make it hit the earnings market that have been father the market over the second half of the year. you will not get that unless you get stronger economic activity. things are getting back to normal. that's a good sign but, it is
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still not yet proven that the economy is accelerating to the extent that wall street thinks it needs to get to get those earnings. so -- ashley: david, quickly, i wanted to get your thoughts on tapering. did the jobs report push that back another month, maybe to october or we just get a mini taper in september? >> i'm of mixed mind here. i think the fed has done such a job of preparing the market for tapering in september, october, that it is going to happen. i think october. ashley: very good. thank you so much. david joy of ameriprise. appreciate your time. >> thank you. tracy: shares of one online travel company are soaring to their highest level in more than a decade and analysts think they actually have more room to go. ashley: detroit is trying to track its bankruptcy. we'll tell you what it could mean for creditors and retirees. but first, as we do this time of day let's take a look how oil is trading. essentially flat, a little lower, down 21 cents at
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$1906.74 a barrel. we'll be right back. -- $106.79 a barrel. [ male announcer ] how do you get your bounce?
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tracy: that time of day charles payne looking a oil in new guinea? >> papua, new guinea. this one is a little bit tough. everyone loves the oil and gas story, particularly natural gas. we love it. tracy: yeah. >> we understand it. papua, new guinea? tracy: a fair amount of people would have to leak on a map to figure out where new guinea is. ashley: to start. >> from a political point of view they have had issues. late last year they put the former prime minister on the board of directors. they already have business out there. they hired 1,000 people in papua, new guinea work there. they would love to liquify the stuff and ship it out. to do that you need government approvals, you need government help and need government not to tax it too much. that is what they're going back and forth. you also need partners.
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they will make announcement on potential partners. i think we'll hear real big names, heavyweights in the industry who wouldn't partner unless they felt good this would go through. they already hired a thousand people. if they built the project it, will help loot more people. it is great economic project and a win-win for everyone involved. tracy: you might as well replace the united states of america with new guinea, wouldn't you? regulation, government taxes holding this up. >> you have scenarios. lng is the stock symbol. that is up huge, a lot of outside money came into but there would be more of thighs things and people do worry about them. because they're long-term projects. they're capital intensive and i need to make sure the government doesn't flip-flop on you to start to add regulations, new rules and taxes. no matter what the jurisdiction -- ashley: you like the stock at this price? >> i really do. i have to give a caveat, i ace-higher risk play and high beta name. in other words it could be
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ex-trotter gnarledly volatile. -- extraordinarily volatile. 90 would be a major breakout and the stock would go north of $100. tracy: we got a little geography lesson. >> next time i bring a globe with me. ashley: thank you, charles. quarter past the hour, time to chick on the markets. nicole petallides on the floor of the new york stock exchange. watching the tech movers. >> that's right, certainly names to watch. let's start off with priceline. worth taking a look at, we have a couple of charts for you. wish we had one 20 years long. it dates back to 1999 highs i was charting with everybody remembers the tech boom but shares are touching the highest levels in 14 years. they are doing well. pacific crest, jpmorgan, several of the firms are raising their price targets above a thousand bucks. you can see here, at about $930. they really think there is a lot of upside potential for this stock. qualcomm shares have been
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falling, this is on an analyst downgrade. when you look at this one, piper jaffray for example, has been cutting the stock and they said accelerating to the low end of the smartphone market. that will not help them and they cut the price target as well. back to you. ashley: nicole, thank you very much. we'll be back to you at the bottom of the hour. tracy: coming up detroit is really hoping to fast track its bankruptcy but find out why an attorney for the city says time is their earn my. ashley: plus look likes we'll have a record soybean crop this year. tracy was just saying that. jeff flock is getting a first-hand look. jeff? >> i am standing out, i am standing out in a field with a man who called this bear market in soybeans. -@he said it was going to be beautiful five months ago. what did this field look like five months ago? whaa were we wearing when we were out there? stay tuned after the break. the latest on the soybean market. it's pretty. you make a great team.
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>> at 20 minutes past the hour i'm patti ann browne with your fox news minute. u.s. diplomatic posts in 19 muslim countries we remain closed at least through the end of the week. lawmakers say the decision was made after officials intercepted
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online chatter from high level people in al qaeda about a major attack. norway is also restricting access to its embassies in the middle east and africa. thousand of train commuters in the san francisco bay area ends caped a nightmare trip into work today. governor jerry brown intervened last night two hours before a midnight strike deadline. brown appointed a board to investigate the labor dispute and report back to him in seven days. new york city is asking the state's highest court to take up the city's effort to stop many restaurants from serving big sugary sodas. mayor bloomberg wants the court of appeals to review a lower court ruling that struck down the measure last week. those are the news headlines on the fox business network. ashley, back to you. ashley: thank you very much, patti ann browne. breaking news for you, tile warner came ceo glenn britt sent a letter to cbs ceo, les moonves. britt is proposing resuming carriage of cbs with new economics time warner reluctantly agreed to.
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tile warner is willing to resume carriage by allowing cbs to make stations available on a la carte basis. stay tuned. tracy: really. here's a story you have to stay tuned to. detroit's bankruptcy. well the process appears to be on the fast track. attorneys for the city are looking to reconstructed plan by year's end and the judge says he might move up the trial even earlier than the proposed october 23rd date. retirees of course remain worried about the future of their pensions. our next guest says they may still wind up with a better deal than those in the private sector. joining as you senior fellow at the manhattan institute. i know pensioners are big, are worried here right now but let's talk about the fast track part of it because we all know bankruptcies can take lifetimes. the judge is saying and everyone is basically saying we have to get detroit up and running again, so let's fast track it, right? >> you're right. a lengthy bankruptcy proceedings are very expensive. lawyers and professional service
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fees can rack up very quickly. it's a black cloud that hangs over the city's future. it's a bad thing to be in bankruptcy even though it is necessary in the case of detroit. the judge thus far has been on the city's side trying to move the process forward as rapidly as possible. that has been a win on the part of the city. that is loss on the part of the unions that want to slow things down a bit. tracy: they want more time to negotiate to get more money out of them. there is political angle. you and i were talking about that and two people basically their place in, kevyn orr as emergency manager his term expires next sent. that's not a lost time. >> right. law he has, the michigan's within 18 months after being appointed, the local voters of a city have the right to essentially vote back in a conventional mayor and city council and throw off state takeover. now it should be said according to the specifics of the law if detroit is still in case of financial emergency next fall the state government could begin
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the whole process over again and essentially reinstall a emergency manager. however, michigan governor rick snyder is up for election next fall and he is a pretty important mover in this whole affair. tracy: we have two people kind of, teetering right now about their placements in this. even all the more, they want to get this done while those guys are still there? >> it could get very messy. what if a democratic governor is elected in 2014? what if they can't reappoint an emergency manager and the bankruptcy hasn't been wrapped up by then? a lost uncertainty. tracy: that brings us to the unions want to slow this down. they want to negotiate more money. pensioners are very worried what they will get out of all this. how do you see that playing out? >> the pensioners, retirees are in a weak position because, the city doesn't have enough money to pay for all their claims and the city manager, kevyn orr, the emergency manager has court gorized their claim as unsecured claim and susceptible to being cut in bankruptcy court. tracy: whereas bondholders, muni
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bondholders are considered secure. >> at love muni bond debt, wall street debt is secured. some of it is not. wall street is definitely angry here too. tracy: are we breaking any laws declaring it unsecured? any constitutional issues here? this will set precedent. if he can get away with calling this unsecured debt a lot of other cities can get away with that as well. >> that is what many people are saying. he believes legal arguments are backing him. muni bankruptcies are so rare. we are in uncharted territory, precedent setting territory. it will be very interesting. tracy: let me ask you before i let you go, do you think they will be able to fast track this? >> i think the signs are good thus far. the judge especially has seen, has been seen to be very motivated to fast track it. he has a good track record of fast tracking cases in the past. not muni bankruptcies but other bankruptcies. signs are good so far. tracy: stephen, thanks so much. i hope you're right. >> thank you. ashley: it has been five months
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since record snowfalls, hard to think of snowfall this time of year set the stage for this fall's record soybean crop. jeff flock is back where it began in mchenry, illinois, with the latest. jif. >> look how beautiful it is out here, ashley. isn't this is beautiful field of soybeans? could be a bumper harvest. we're with a man who called this five months ago. let me take you back five months ago. it may give everybody a shiver what it was like that day but you told us then, jim mccormick, take a look at this snow back, this bodes well for beans in the fall or in the spring. >> we're looking at snow pack about six months ago. it was great. we were building replenish from last year's drought we had. the moisture came. here's a result. a bumper bean crop is on the way. >> i want to get to prices in a moment but first look at conditions out there. it has been a cool summer. that has meant that you've got a lot of moisture. the moisture is held in the ground. good to excellent condition,
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throughout. it has been 60 plus%. last year you were in the 40s and 30% of good to excellent condition. this could be an all-time record bean harvest. >> this definitely could be a record bean harvest. weather in august sets the tone. we're looking at big crop and real rebound in stocks when it is all said and done. >> loft carryover. look at prices. they bounced back a couple pennys today. we're at a 17-month low in soybeans right now. good for exports. good for the chinese. use a lost beans. everybody use as lot of beans. >> we pretty much use beans in everything you eight. these prices should he help consumer get a better bargain for its food. >> we showed you beanses. take a look at corn. corn is farther down than beans. beans are still holding. wall street fund are still long beans, they're short corn. >> yeah. over the last few weeks when the corn market went through the
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pollinization stage without any major trouble, they went long 100,000 contracts so now they're short 100,000. they're still long beans. if we get through august without a weather problem they will probably start selling beans like they did the corn. >> ashley, it is interesting. a lot of money came into the grains market because of the drought. they made a lot of money. this year is indicative think what the market will do, they're short corn, trying to make money but on the short side instead of the long side. ashley: down to mother nature ultimately, isn't it, jeff frock? >> yes. ashley: thank you very much. tracy: that is shot for a christmas card. i love it. coming up misconduct among tsa agents is totally on rise. find out what it could mean for your next trip. that is next. the dow is down 56 points. don't go anywhere. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550
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♪ ashley: just under 90 minutes until the close. now nicole petallides at the new york stock exchange keeping track of these markets. is there a number, the market's not really reacting. >> reporter: we are seeing a market that has been to the downside of a long. at its lowest point of the dow jones industrials were down 74 points. the momentum here is still to the downside. as you see, 55. also the s&p 500 down one-quarter of 1%. on the dow jones industrial average 24 of 30 names have red arrows. there are a lot of red arrows. so not in a dramatic fashion. let's get on. amid talk about on-line real-estate, zillow moves o a new high. a 52 week high. president obama teaming up to confirm the hosting of a
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question and answer session with president obama. we will be moderated by the ceo of zillow. you will be able to write in questions so you can participate in this one. they can be submitted via video and the facebook and twitter page. reporting numbers tomorrow. ashley: lots of interesting zillow. thank you so much. tracy: we are mad because there undervaluing our homes. exactly. all right. more bad news for air travelers. misconduct by tsa employees. they dumped 26% between 2010 and 2012. how concerned should you be? here with the details. ashley: misconduct. >> let me tell you. there are all kinds, everything from stealing to not showing up for work because we don't need people at the airports to do their jobs. lots of problems. a number of complaints, jumping from 2600 in 2010 to 30400 in
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2012. a big increase. i say if you are relying on people to give you one your flight -- ashley: all it takes is one to be asleep. >> sleeping is one of the big issues. sleeping on the job is one of the things that they it -- violations of screening and security. a story about one agent who took his friend around so he did not have to go through screening. they opened up the bag and illegal stuff. i mean, all kinds of things. the cops at the airports. @%entually. sometimes they violate the rules themselves. in need to look seriously. not everyone is being prosecuted to the letter of the law and should be. ashley: i have to be honest. there are great because they make you feel better, but i question how effective they are because i think because of these reasons and others i just think it is really there to make us feel better but don't have a lot of confidence. >> we will make you feel better tonight on our show. i am glad to announce we will be talking about a new program
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coming out from insurers where they want to protect so that the contract whether you're really following the rules are not. do you like this, what this? reductions on their auto insurance, which is a big sell, particularly for older drivers. it tracks everything from how fast you're going, questions about if they're following where you are and do they give the information to. tracy: she lost me there. >> already backed out and moved on. that was my reaction. no sharing the information. it stops here. also, you might want to hink about if you are -- if you have a little anxiety. anxious, nervous, worried, join us tonight. ashley: thank you. tracy: becoming a big wine bottle. don't miss it tonight. at six and 9:00 p.m. eastern right here on the fox business network. ashley: no need to panic.
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we are all okay. coming up, president obama vetoes a ban. the tech giant is still facing major hurdles. we will ask an analyst with the shine is coming off. tracy: as we do every day, take a look at your tin and 30-year treasury. up four basis points. your 30-year is moving as well, up five basis points. the dow is down 57 points. we will be right back.ll. ♪ to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk
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♪ >> reporter: good afternoon, everybody. liz claman live from the floor of the new york stock exchange. quite a historic day, not because of what is happening. the dow jones industrials down 56 points. look where it was exactly two years ago today. it fell below 11,000, and it was a sell-off. after the s&p ratings agency downgraded for the very first time the aaa rating for u.s. credit. since then take a look at what the market is down. the dow jones industrials gaining 36 points, nasdaq up 45, s&p up 42. gold reacted dramatically two years ago. it jumped and went about 24% to the upside, but no longer. it has come down. aaa, aa, these are the countries in the relative area. we will see you at the top of the hour.
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♪ ashley: well, good news for apple. in a rare move the obama administration vetoed an international trade ruling against the tech giant. will it banned the import of older ipads and iphone? what does this decision made? joining us now, analyst at tells the advisory group. thank you for being here. you were pretty surprised by this move by the obama administration. >> it was a surprise, especially when you think about apple testifying before the senate and the taxes and things of that nature. this type of vito has not happened in quite some time, but you have to remember that these are older items, will generation phones and tablets. it was not a hindrance. ashley: it is to do with patents and trade with samsung. why does this come out now if it is on older technology? >> the two companies are clearly
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doing battle for market share with new products and trying to make it more difficult for the other to offer products. ashley: one minute it's okay and now it's not basically from vincennes and pointed you? >> yes. one minute there were barred from selling older products, and now they're allowed to. ashley: interesting. you're saying that is not going to have a huge impact because the nature of the products themselves. >> because they're older generation models it will not be a big impact. ashley: what do they do? a back to a trade commission and complain or appeal in court? >> likely, yes. this will not stop the legal battle between the two companies. it is just a setback. ashley: wanted to mention retail stores. we are seeing sales drop. they're is a sense that they need some sort of revamp or reset. would you agree? >> not unusual for retail storen product cycles which is really where we are today, waiting for the next generation. the best, they're refreshed
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their product line up late last year and now we're waiting for the others to come to the store. ashley: missing that side of the business. taken up to ten months and still have not found someone. that cannot be good. >> well, the successor to ron johnson, i think he was dismissed about ten months ago. i don't think it is having a major impact on the performance. it is more product cycle issues. i'm looking forward to hearing who the new head is. ashley: you mentioned the product cycle. the continually ramp what they have. maybe that is taking some of the shine off. a lot of lucky lose. >> i still think that anecdotally they are the busiest store in the mall. so on the relative basis not as busy as the past, but still doing very well. ashley: now want to get to the e-book fight. federal court ruling that apple conspired to raise prices. what impact? apple settled all of this in
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europe. >> template does not seem to be particularly pleased. from my end it was obvious that amazon would like to price more aggressively, incremental market share, and they are the market leader. so the question at this point is what will be the uutimate punishment? to what extent may have to show prices for competitors which could hinder sales. ashley: how do you think it will play out? >> i suspect that apple will push back on the initial offer. ashley: maybe find some compromise. interesting. all right. thank you for being here. tracy: okay. whistle-blower edward snowden revelation that the nsa has been collecting affirmation has highlighted how divided americans are. the supreme court might take the first step in selling the debate. no surprise, fox news senior judicial analyst has an opinion
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of this. >> if i could just weigh in. the supreme court would not take the first that. there will take the last step. tracy: you're right. >> the final word. someone will challenge something somewhere along the line. tracy: what happens? play out. >> the reason we are discussing this now is because the chief justice of the united states over the weekend while on vacation in an offhanded manner said to a reporter, look, this privacy stuff is all over the place. i carry a cellphone just like everyone else. sooner or later we're going to be reviewing the ability of the federal government to get inside of this. i don't want to give you any thoughts because i may be having the final say. because he like everyone else reads newspapers and goes on the internet and is aware of what is happening he knows that this will eventually get to him. the reason is because it is so unbelievably widespread. ashley: prevalent.
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>> on june 6th of this year, just two months ago, when edward snowden revealed what he now revealed the government denied what it now with mets, which is that it has the content, the content of every e-mail, every text message, and every phone call in the united states of america for the past fill in the blank. they won't tell us. initially they said we only have identifying information. we know to whom it was sent, by whom it was sent, how long the call was made and where the caller was. that is not true. we now know that they have it all. whether or not they have read it, whether or not they have listened to it, they have not said. we know they can with the pressing of a couple of keys. ashley: what it boils down to visit will end up in the supreme court more than likely in the government will argue that this is a matter of national security . so does it come down to what actually qualifies as national security?
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>> it comes down to what the com -- will we permit the congress to do in the name of national security or anything else. start with basics. the constitution is the supreme law of the land. it created the presidency, courts, and congress. they can only do what the constitution authorizes, no matter how emerge and the need for action. tracy: i don't believe any of this. you believe they have access to every single text of the men out there? >> i believe it for couple of reasons. edward snowden and other nsa whistleblowers including a very famous one named thomas break it was prosecuted by the government, and the prosecution was tossed a said this the government has not denied it and because the president is said to months ago, they cannot listen to your phone calls and read your text and has stopped saying that. i do believe that they reluctantly acknowledged that they have this power. i also believe it because congressman rogers, the chairman of the house intelligence
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committee passed general keith alexander, the director of the nsa, does the nsa have the ability to read e-mails and listen to phone calls? answer, no, we don't have that authority. question, ability. he answered about authority. he was under oath when he answered. tracy: that is very frightening. >> it is. we lived and frightening times. tracy: thank you for being here. >> the pleasure. ashley: a little after a quarter till. let's take a look at stocks. the dow has been stuck in the same range for a while. jonathan joining us. number of private equity managers. now is the time to sell. this market is looking choppy. take profits on your existing investments and a look for new investments. >> that is a pretty bold statement. baltic the other side of that right now. look at where the market is ben
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ann where we think it will go. corporate earnings will help us move higher. economic data will help us move higher. everyone who has been sitting on the sidelines will have to start playing catch-up. once that happens we will see an infusion of capital. to take short-term profit off the table? that might be a good idea. the long run this market will move higher. ashley: that's for sure. thank you for joining us. appreciate it. tracy: still ahead, big money on the line as major league baseball suspends 12 players that were totally mixed up in a@ steroid scandal. we will have all the details next. it will be right back. ♪ [ male announcer ] how do you get yourboue? bounce is great because the freshness lasts for weeks in the drawer.
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♪ tracy: okay. moments away from an
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announcement from major-league baseball. what we already learned is 12 players have excepted a 50 game suspension following the latest steroids scandal. joining us now on what this means for baseball and what will happen, forbes managing and your -- editor. let's first talk about the alex rodriguez. waiting to hear what happened. right now he is suspended for 214 games. if he appeals to complete chicago tonight. >> i fully expect him to play tonight. at think what is going on with the rodriguez camp and a baseball camp is really how long the suspension will be and how many games to get to pay -- play. it basically all comes down the money. at the end of the day there will probably end up costing alex $34 million suspended their next year. that would leave him still the bulk of the $100 million that the yankees owe him through the 2017 season, provided his it is
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okay and he stays healthy and place and there are no more performance enhancing drug allegations. tracy: that is a big hit. he also has 40 million from his prior rangers contract. so more money than he knows what to do with. he has been forever hated. the cover of the post today, just go. what does he do? is it really just all about the pay check at the end of the day? even that the suspension -- he is old. i mean, he is gender from then me, but old for baseball. but the time it's over he could be too old to play. >> and major league baseball the fact that you are injured or plane, you still get paid. he is do that money for his contract. whether he is at 250 hitter or 350 hitter, part of which as you correctly point out the texas rangers, still chipping in. tracy: let's talk about big picture here.
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performance enhancing drugs. in order to play unfortunately at 38, 39 years old, sometimes often need a little help. what is happening in baseball? shared the lead just come to accept it? like and all the guys not playing for the next 50 games. >> i think that major league baseball, a lot of criticism ten or 15 years ago when bonds and mcgwire were breaking all of the home run records. they knew what was going on and they did not do anything. since then they had the new collective bargaining agreement, worked with the union to have specific rules and regulations in place where the penalties specific to certain abuses are now to -- now baseball is doing what it can to clean up the sport working with the union. you have to give them credit. you cannot go after baseball and criticize them for doing something and then also criticize them for not doing anything. we have a lot of good young stars in the game. the cuban player with the
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dodgers, harbor with the nationals, the guy with the angels. there are a lot of good young players. last year attendance hit its highest level since 2008. this board does have good momentum on several fronts. tracy: you are not worried that this will put a black mark on baseball. as you point out, it is a moneymaker. even the teams that have been struggling are starting to see money come in again. >> sure. the dodgers just sold for $2 billion. we have seen local regional sports networks go through the roof. the angels, texas rangers, dodgers. they have all signed new deals. two with three times what the previous deal was. so in terms of the popularity and the ability to make sport on television, baseball has never been this of the. tracy: that is good to hear. great to see you. thank you, sir. ashley: coming up on countdown to the closing bell, believe it
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or not, it has been two years since the s&p downgrade of u.s. debt. we have the look of what has happened since that date. the doubt you remember tumbled. where we are likely headed. a special edition live from the new york stock exchange next. ♪ right now, 7 years of music is being streamed.
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♪ liz: good afternoon, everybody, i'm liz claman live from the floor of the new york stock exchange on this first day of trading when it comes to the weekend, but, boy, what a historic day it is. two years ago a lot was happening on this floor with the traders behind me watching the dow, nasdaq, and s&p drop precipitously because back then the s&p ratings agency had, of course, for the first time, cut the united states' credit
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rating, the credit worthiness of ifference two yearsa to aa-plus. made. that in a minute. today, the big stories are two specific stocks hitting magnificent highs today from chicken friends. oh, yes, tyson to facebook. tyson foods, boy, they had better than expected earnings, chicken prices tripled. beef prices looked extraordinarily strong as well, and china is a real jumping point for the company. the stock jumped 4% with the high of the session at 25.85. right now, below 29.78. facebook up 97 cents, but it's the 39 # part of it people are excited about it. it continues to trade higher than a year ago may, and, of course, that ipo price was $38 a share. friday, timely closed for the first time above 38, and it continues to march higher as you